Professional Documents
Culture Documents
(Submitted for the Degree of B.Com. Honours in Accounting & Finance under University
of Calcutta)
SUBMITTED BY
SUPERVISED BY
1
ACKNOWLEDGMENT
2
ANNEXURE- IA
SUPERVISOR’S CERTIFICATE
This is to certify that RAJNISH MISHRA a student of B.Com Honours in Accounting & Finance
of The PRAFULLA CHANDRA COLLEGE of Commerce under the University of Calcutta has
worked under my supervision and guidance for Project Work and prepared a Project Report with
the title E-Commerce – ‘E COMMERCE- IMPACT OF ONLINE RETAILING- A STUDY ON
FLIPKART’ which he is submitting, is His genuine and original work to the best of my
knowledge.
Signature:
COLLEGE
3
Annexure-IB
Student’s Declaration
I hereby declare that the Project Work with the title E-Commerce – ‘E commerce- impact of
online retailing- A case study on Flipkart’
submitted by me for the partial fulfillment of the degree of B.Com Honours in Accounting &
Finance under the University of Calcutta is my original work and has not been submitted earlier
to any other University/Institution for the fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in completely or in part has been incorporated in
this report from any earlier work done by other or by me. However, extracts of any literature
which has been used for this report has been duly acknowledged providing details of such
literature in this references.
Signature:
Name: RAJNISH MISHRA
RegistrationNo:046-1111-0359-19
Cu Roll no: 191046-21-0354
College Roll no: 1913271
Place: KOLKATA
Date:
4
TABLE OF CONTENTS
Chapter Name of the Chapter Topic Page
No.
Introduction Background of the study
Need of the study
literature Review
Objectives Of Study 06-09
1
Research Methodology
Limitation of the study
Chapter Planning
5
CHAPTER 1
INTRODUCTION
Broadly speaking, electronic commerce emphasizes the generation and exploitation of new
business opportunities and to use popular phrases: “generate business value” or “do more with
less”.
Electronic Commerce is enabling the customer to have an increasing say in what products are
made, how products are made and how services are delivered (movement from a slow order
fulfillment process with little understanding of what is taking place inside the firm, to a faster
and rt1ore open process with customers having greater control.
Electronic Commerce endeavors to improve the execution of business transaction over various
networks.
6
4. Effective Performance
It leads to more effective performance i.e. better quality, greater customer satisfaction and better
corporate decision making.
We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed,
accelerated, or real-time interaction) with the help of electronic commerce.
6. Execution of Information
It enables the execution of information-laden transactions between two or more parties using
inter connected networks. These networks can be a combination of ‘plain old telephone system’
(POTS), Cable TV, leased lines and wireless. Information based transactions are creating new
ways of doing business and even new types of business.
7. Incorporating Transaction
8. Increasing of Revenue
Firm use technology to eitHis lower operating costs or increase revenue. Electronic Commerce
has the Potential to increase revenue by creating new markets for old products, creating new
information-based products, and establishing new service delivery channels to better serve and
interact with customers. The transaction management aspect of electronic commerce can also
enable firms to reduce operating costs by enabling better coordination in the sales, production
and distribution processes and to consolidate operations arid reduce overhead.
7
LITERATURE REVIEW
As we all know, internet and e-commerce are entirely committed towards every developed country. But we
think it can be accomplished and can make a remarkable benefit to developing countries also if an ideal
business purpose can be made.
The following were the major effort at research in the subject, which have been referred for the research
purpose.
a) Ohidujja man et.al clearly discussed that E-commerce is a revolution and turning point in online business
practices and can make a huge contribution to the economy.
b) Mehrdad Salehi et.al found out distinguish between online marketing & traditional marketing. Though
most of the people of Bangladesh especially the rural people are not enough capable of operating internet to
run the online business. For that reason, they need to be dependent on traditional marketing.
c) Hasan et.al also indicated that currently, e-commerce organizations have increasingly become a
fundamental component of business strategy and a strong catalyst for economic development.
d) Others A huge amount of research work has been done on e-commerce which is basically on online
shopping. A large group of researchers has found out and also pointed out the necessity and possibilities of
Online Shopping. On the other hand, limitation of e-commerce is found and at the same time, they provided
essential suggestion and came to a prediction to make Online Shopping more useful for the consumers. But
the contribution of traditional marketing is also inescapable but compare to online shopping it is less
effective we think.
OBJECTIVE OF STUDY
To find the factors that leads a website user to return to or recommend the website
Flipkart.com
To discover the key factors that influence online buying behaviour of consumers in India
To identify who are the online shoppers in terms of demography
To understand the customer awareness on Flipkart.com
To determine the factors responsible for customer satisfaction
8
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem undertaken. Te problem can be solved
………...scientifically using Research methodology.
The Research design is the blueprint for the fulfillment of the objectives and answering questions. It is a
……...master plan specifying the method and procedures for collecting and analyzing the needed information.
The Research is based on primary data: The source of Data includes Primary and Secondary Data Sources.
………...PRIMARY DATA-Primary Data is the collection of information directly from the sample respondents .
.The main source of the data for the project was collected through Questionnaire with open and closed
……....endedQuestion..
We have done this analysis with the help of charts, tables, graphs etc.
Chapter Planning:
Chapter-1 Introduction
Chapter-2 Conceptual Framework
Chapter-3 Data analysis & Findings
Chapter-4 Conclusion & Recommendation
Chapter-5 Bibliography
9
CHAPTER 2
Initially, the founders had spent 4lakh to set up the business. Flipkart has later raised funding
from venture capital funds Accel India (US$1 million in 2009) and Tiger Global (US$10 million
in 2010 and US$20 million in June 2011). On 24 August 2012, Flipkart announced the
completion of its 4th round of $150 million funding from MIH (part of Naspers Group) and
ICONIQ Capital. The company announced, on 10 July 2013, that it has raised an additional $200
million from existing investors including Tiger Global, Naspers, Accel Partners and Iconiq
Capital.
Flipkart's reported sales were 40 million in FY 2008–2009, 200 million in FY 2009– 2010and
750 million for FY 2010–2011. In FY 2011–2012, Flipkart is set to cross the 5 billion (US$100
million) mark as Internet usage in the country increases and people get accustomed to making
purchases online. Flipkart projects its sales to reach 10 billion by year 2014. On average, Flipkart
sells nearly 20 products per minute and is aiming at generating a revenue of 50,000 crore (US$.8
billion) by December 2015.
On November 2012, Flipkart became one of the companies being probed for alleged violations of
FDI regulations of the Foreign Exchange Management Act, 1999
In July 2013, Flipkart raised USD 160 million from private equity investors, taking the total to
USD 360 million in its recent fund raising drive to build and strengthen technology and bolster
its supply chain.
In October 2013, it was reported that Flipkart had raised an additional $160 million from new
investors Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina SA and
Vulcan Capital with participation from existing investor Tiger Global. With this, the company
has raised a total $360 million in its fifth round of funding, the largest investment raised by an
Internet company in India, emulating InMobi’s $200 million investment from Softbank in
September 2011.
10
The company valued at approx. US$15.5 billion (May 2015), and plans to use the capital raised
to improve its technology and supply chain capabilities, enhance its end user experience and for
hiring.
India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011
and to $14 billion in 2012. About 75% of this is travel related (airline tickets, railway tickets,
hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300
Million as of 2009).
India has close to 10 million online shoppers and is growing at an estimated 30% CAGR vis -à-
vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of
sales.
India's retail market is estimated at $470 billion in 2011 and is expected to grow to
$675 Bn by 2016 and $850 Bn by 2020, – estimated CAGR of 7%. According to Forrester, the e-
commerce market in India is set to grow the fastest within the Asia- Pacific Region at a CAGR of
over 57% between 2012–16.
11
INTERNATIONAL SCENARIO –
Flipkart’s reach has not yet reached the International market so we cannot comment on its
International Scenario but the management has plans of extending its business to the South East
Asian region.
The Change from traditional commerce to E- Commerce
For nearly 25 years, Dinesh Chopra lived with a locational handicap. Chopra sells computer
parts, electronic gadgets and accessories from his outlet in Nehru Place
— an assembly of several four-storey buildings. Although Asia's largest computer market
registers thousands of footfalls every day, only a fraction brave the filth and dilapidation to climb
up. "I'm on the first floor and that's my weakness," says Chopra, director, Softek Surya. "I don't
get regular walking customers."
But Chopra does not mind anymore. "Now, they land on my shop via online marketplaces," he
smiles. Softek is a registered seller on five online marketplaces, including eBay and Flipkart.
"About 35 per cent of my marketplace buyers are from South India, who have never seen my
shop," he says. His annual sales have rocketed from Rs 14 crore in 2010-11 to Rs 60 crore now;
and 70 per cent of it is from online marketplaces, which are adding "muscle to business".
Chopra is a prime example of online marketplaces — branded e-tailers who host sellers, and
connect them to buyers for a commission — empowering a small business to scale up.
12
An example of another kind of empowerment they are enabling is India Trend, which is in
business onlyof online marketplaces. Seven years ago, Parul Arora Mittal and His mother "tried
their luck" by putting 20 pieces of jewellery on eBay. All were sold in a week. Today, Mittal's
small operation exports handmade, alloy-metal jewellery, via eBay. "We never had the resources
to set up a physical store," says the 30-year-old. Now, she has no reason to. "Since then, I have
never even thought of a physical store. The online marketplace is my business place." And their
numbers are increasing.
Amazon is the latest, launching its online marketplace in India in June. Globally, the world's
largest retailer earns 40 per cent of its 2012 revenues of $61 billion(Rs 3,66,000 crore) by selling
other people's goods.
Sensing the groundswell and business logic even Flipkart, India's largest online retailer,
started selling goods of other sellers — the online marketplace model — along with its own
goods. "It's the right time as we have now built the Flipkart brand," says its co-founder & CEO
Sachin Bansal, adding the online marketplace is the "right model for India". Such moves by e-
commerce players is opening up a world of possibilities for small entrepreneurs like Chopra and
Mittal.
13
CHAPTER 3
Data Analysis:
This chapter aims obtain the objective of the study by critically analyzing the qualitative data
through thoroughly examining the interviewee‘s responses and beliefs. This has been achieved
through evaluating the most relevant responses by the participants. The data has been analyzed
and discussed by comparing the comments made by the respondents with the literature review
keeping in mind the research objective of the study. Thus, the rationale of this analysis is based
on the personal answers provided by the respondents. An appropriately designed questionnaire
was used to collect the primary data for the study. The data for 100 respondents was organized
systematically in tables and graphs and then was subjected to analysis using appropriate statistical
tools. The results of the analysis are presented in the following section in order to assess the
customer perception towards online shopping on Flipkart.com in India. here for analyzing, we
are considering two factors. That is:
Demographical factors
Behavioral factors
14
Demography
1. Age Group:
46&
15-25 26-35 36-45 above Total
Percentage 63 24 12 1 100
Age Group
1
12
15-25
24
26-35
36-45
63
46& above
15
3. Gender of Respondents
Gender
42
Male
Female
58
According to demography profile, in this study 58% male and 42% female respondents are part
of my target population and they help me to fulfill my questionnaire from different area of
Bangalore city. From these groups total respondents are 100. So, according to the survey result,
the male respondents are more and can be told that they interested to shop online than female,
even though both of them shop online.
16
4. Occupation
Business
person House wife Salaried Student Total
Occupation
8
7
39
Business person
Housewife
Salaried
Student
46
In this survey, 46% of the respondents are salaried and 39% are students. So they both together
made majority of respondent‘s percentage (85%). 8% are business persons and 7% are House
wife. Salaried persons and students will always look for new technologies and new services
which make them more comfort.
17
5. Annual Income:
9&
0-3L 3-6L 6-9L above
No. of Respondents 60 23 13 4
Percentage 60 23 13 4
Annual
4
1 0-3L
3-6L
6-9L
2
6 9& above
18
6. Educational Qualification
Table: Educational wise respondent
No. of Respondents 63 36 0 1
Percentage 63 36 0 1
Educational Qualification
0 1
36 Graduate
or Equivalent
63
OtHiss (Phd)
19
Behavioral factors:
7. Frequency of purchase from online
Table: online shopping usage
35
29
30
25 23
21
20
Male
15 14
Female
10
5
4
5 3
1 0 0
0
Always Often Sometimes Never
Analysis and Interpretation: More than half of them use online shopping sometimes, ie
52%. People who always and mostly shop through online shopping are also good in number, 9
and 35, together 44%. And who use online shopping rarely is very less in number 4%. Since only
44% are mostly using this, there is a wide space to fill and to make online shopping a great
success. And there is not much gender difference in online shopping, which means both males and
females enjoying online shopping and its benefits.
20
8. Modes of awareness about Flipkart
Table: Modes of awareness about Flipkart
Link
Word Blog s Promotiona
Advertisements Search Engines Total
of Recommendation from l Emails
Mouth s other
Websites
No. of
39 22 2 15 5 17 100
Respondents
Percentage 39 22 2 15 5 17 100
No. of Respondents
45 39
40
35
30
22
25
1 1
20
15
5
10 2
5
0 No. of Respondents
21
9. Frequency of Using Flipkart.com while online
Every Hardly
Time Occasional Most of the Ever Total
ly Time
No. of Respondents 17 45 32 6 100
Percentage 17 45 32 6 100
No. of Respondents
50
45
45
40
35
32
30
25
20
15 No. of Respondents
17
10
5
0 6
22
1. Category that mostly prefer to buy from
Healthcar Home
Apparels & Books, e &
Electronic Accessories Movies& Stationar y Personal & Kitchen Total
s Music Care Items
No. of
Respondents 39 20 30 3 4 4 100
Percentage 39 20 30 3 4 4 100
Flipkart.comTable: Cataerory mostly prefer to buy
from flipkart
No. of Respondents
45
Graph:
40 39 Category mostly prefer to buy from Flipkart
35 30
30
25 20
20
15
10
5 3 4 4
0 No. of Respondents
23
2. Reason for Customer’s preference on Flipkart.com than
Easy
Fast After Paymen Portal
Delive Availability Sale t Feature Total
r s Service Options s
No. of
Respondents 41 29 8 17 5 100
Percentage 41 29 8 17 5 100
100
80 Fast Deliver
Availability
60 After Sales Service
Easy Payment Options
40 Portal Features
Total
20
0
No. of Respondents Percentage
24
3. Recommending Flipkart to Others:
95
100
80
60
No. of Respondents
40
20 5
0
Yes No
25
Customer’s rating about services on Flipkart.com:
No. of
Respondents
50
45
40
35
30
25
20
No. of Respondents
15 17
16
10
11
5
7
0
1 2 3 4 5
Source: Primary Data
49% of customers rated 4 as the experience and more than half of the population (66%) rated4 &
5 as experience
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FINDINGS:
There is not much difference in gender for using online shopping.
Students and salaried persons are most frequent users of Flipkart.
Frequency of purchase for electronics, books and music, apparels and accessories are
more in Flipkart.
Word of mouth was more influential in promotion as many people were made aware by
their friends and family when customers recommend this website to them.
The services provided by Flipkart are good and even more scope of development is there
for increasing the customer strength.
Digital marketing techniques like search engine marketing, links providing other website
and advertisement also functioned well for promotion of this website.
Fast delivery is one of best service Flipkart is providing.
Different payment options available in Flipkart made customers more satisfied and
comfort for paying while purchasing product.
Most of customers have good experience with Flipkart while purchasing products.
Most of them are satisfied with the services of Flipkart and so that they succeed in
retaining the customers.
27
CHAPTER 4
CONCLUSIONS AND RECOMMENDATIONS
RECOMMENDATIONS:
Flipkart has successfully placed itself into the prospects mind making it the India‘s
largest online store with huge range of products. But it still needs to work on their core
competence that is books and stationery items.
Delivery services can be improved mainly in rural areas by selecting appropriate courier
service which has services in customer area for dispatching an item.
Can make free delivery to all priced products.
Can include more coupon codes and gift vouchers for increasing the traffic of the
customers.
Out of stock items can made available as soon as possible and intimate the needed
customers.
Should look for International/ Overseas markets or Neighboring Countries.
Critical mass of Internet users–Internet users in India is increasing at increasing rate, so
Flipkart can target more & more cities i.e not only tier 1 & 2 but also tier 3 & 4cities,
which will help generate stronger customer base & more revenues.
Should clearing focus on the Growing Online Apparel business & it can diversify into
apparel category either organically or inorganically by acquiring other portals.
User Experience: Portal should continuously aim to work to improve the user experience
by adding more & more innovative features in the website like virtually shopping basket,
virtual trial rooms. In this competitive world to differentiate via user experience, the
ultimate winner will be the Indian online consumer.
Should comprehensively invest into E-CRM & online reputation
management.
Logistics & Supply Chain: can continuously aim to reduce the delivery time cycle.
Price will still be a factor as amazon being a huge company will use its economies of scale
to remove their competitors from the market; therefore they need to be more competitive
on that aspect.
28
CONCLUSION
The thorough study is based on the consumer behavior analysis which serves a great idea
regarding consumer perception when they go for online shopping. In order to satisfy themselves
consumer perceive many things before buying products and they will be satisfied if the company
meet their expectation. The Overall Brand Value of Flipkart is good, but it is facing some tough
competition from its global competitors like Ebay and Amazon. Talking about domestic market
i.e India, it is the most superior E-business portal which is aggressively expanding & planting its
roots deep into the Indian market & at the same time shifting the mind-set of the people from
going &shopping from physical store to online stores, which is magnificent!.Be very focused on
consumers and build amazing experiences for the customers.
29
BIBLIOGRAPHY:
www.flipkart.com
www.ecommerce-land.com
www.tutorialspoint.com
www.aofund.org
www.investopedia.com
wikipedia
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QUESTIONNAIRE
Bio data
1. Age Group
a. 15-25
b. 26-35
c. 36-45
d. 46 & Above
2. Gender
a. Male
b. Female
c. Others
3. Occupation
a. Business Person
b. Housewife
c. Salaried
d. Student
4. Annual income
a. 0-3L
b. 3-6L
c. 6-9L
d. 9 & Above
5. Educational Qualification
a. Graduate
b. Post Graduate
c. SSC or Equivalent
d. Others (PHD)
For Consumers
6. Frequency of purchase from online?
a. Always
b. often
c. Sometime
d. Seldom
e. Never
31
8. Frequency of using flipkart.com ?
a. Every time
b. Occasionally
c. Most of the time
d. Hardly ever
32